Cumartesi, 15 Temmuz 2017 17:05

Misconseptions About Greek Property Market - Greeks are selling their houses very cheap because of the crisis.

Yazan

-  The Greeks are selling their houses very cheaply because of the crisis.

It is a fact that in 2008 started the decline for the Greek economy. It would be better not to get into deep discussion about the technical aspects of 

this crisis but in brief it was a government debt crisis. It was a structural crisis and all the structural weaknesses led to a crisis of confidence. 

 

Economic effects: 

Greek GDP fell from €242 billion in 2008 to €179 billion in 2014.

GDP per capita fell from 22.500 euro 2007 to 17.000 euro in 2014.

Greece was in recession for over five years, with an unemployment rate flying to 25% -2015

The Greek economy was one of the Eurozone's fastest growing from 2000 to 2007, averaging 4.2% annually, as foreign capital flooded in.

The external dept. of Greece is 460,644,000,000 USD. with a rank 25 in the world. Basic economy rules say that there is no unaccompanied money.

The big part of that debt is parked outside Greece waiting to return to the nest in some way or another. 

 

Social effects 

Greek government transmitted the bill to Greek people as austerity measures which was severe for the Greek people 

Greeks had to pay all the unpaid of the history in a short and limited time. 

 

The Greeks have a very high ownership ratio in real estate almost near to ex-communist countries.

That means that they know quite good the real estate sport. 

The hostage rate in Greece is high and many Greeks rent their properties to foreign people as to have a rental income. 

The owners were not used to crisis like other countries. They didn't have the experience of  crisis management

They reacted late and were very slow, but the property prices, which have been high since 2008, have fallen by about fifty percent.

Some sold their houses to pay the real estate tax of other houses they own, some sold their houses to get out of 

tax authority’s owners lists, some sold their houses for cash necessities. 

As a result, the urgent transactions took place, the very cheap ones sold.

 

How is the situation today in Greece?

As of today (June 2017) psychology is changing. 

Over the past three years, European countries have been establishing Golden Visas that are designed to attract economic benefit to their country.

Greece made the move as the latest nation to join the bandwagon and in 2013 announced the Law 4251/2014. Amendments came on 2014,2015,2016.

The Immigration and Social Integration Code (Law 4251/2014, Government Gazette 1, no 80) contained provisions that facilitate the stay of third-country investors,

whose investments are characterized as strategic investments, via the provision of extended stay time limits for the representatives of investment bodies and their partners.

Moreover, it is given the possibility of granting residence permits to third country nationals and to the members of their families, who proceed to the purchase of real estate property in Greece,

the value of the one exceeds 250,000 Euro.

This law was first discovered by the Chinese and the trend began with them. Chinese people followed by Russians and Lebanese citizens.

Finally, the Turks started to buy houses from the Greek market with the momentum to leave behind all other countries.

Demand today has risen so much and in the middle of 2017 prices began to stabilise in general, but having timid increases in tourism active neighbourhoods.

 

 Misconceptions are not affecting only foreigners.

Another misconception which we as realtors should fight is that Greeks have the feeling that nominees are rich and they don't care for their money. 

 

That means serious difficulties during negotiations. 

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